You may pay for room and board if the student is enrolled one-half time.
Food for a college student costs a lot of money!
Note that your child’s account may not be used to take others to lunch. The student must be enrolled at least half-time at the educational institution to qualify for room and board costs.
Tyler’s son received a full-ride scholarship, and he is now mad that he saved his $20,000 529 account. But wait! Does the “full-ride” include all living expenses and food? A computer or internet expenses? Tyler will likely use his saved funds anyway.
My child needs to learn autonomy. As a college student, I will consider charging his/her account fair value for rent and food even if they live in my home. I will reinvest any extra funds.
I can purchase a home near the school and rent it to my child with her 529 funds, staying within the school’s published Average Cost of Attendance to avoid triggering an audit.
No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.